CIMdata PLM Industry Summary Online Archive

1 February 2007

Implementation Investments

IFS Chosen to Supply Maintenance System for Neste Oil's Refineries

IFS has secured a contract in Finland to supply the enterprise asset management system for Neste Oil's refineries in Porvoo and Naantali. The system will be used to supervise production line maintenance, manage resources and material flows, track costs and support operation planning. The contract was secured in January 2007 and is valued at € 2.0 million.

The system implementation is a part of a wider revamp of Neste Oil's operating procedures and will result in increased profitability and agility. The overall uptime of the production facility is expected to increase as preventive and predictive maintenance are optimized. Implementing IFS Applications will bring greater transparency of the actual plant status and better planning tools. It will also provide a refined methodology covering complete enterprise asset management, focusing on reliability, safety and overall equipment effectiveness.

"IFS Applications will facilitate production management and the monitoring of equipment status to secure overall effectiveness and good cost control," said Leo Rautanen, Manager of Maintenance Department in Neste Oil. "We can be better prepared for possible disruptions and critical malfunctions. We will also be able to monitor projects in real time."

The process industry is one of IFS' seven targeted markets. IFS provides industry-specific functionality for enterprises in chemicals, food and beverage, pulp and paper, and metals segments. IFS Applications for enterprise asset management in the chemical industry provides support for all critical processes, including RCM (reliability centered maintenance), OEE (overall equipment effectiveness), plant design and re-design, maintenance management and standardized real time automation integration based on open standards. The IFS Applications suite includes a complete asset as well as product lifecycle management solution.

IFS customers in the chemical industry include DuPont, Jotun, Flint Group, Willamette Valley Company, Akzo Nobel and Becker Industrial Coatings. Other IFS process industry customers include Pepsi, Iams, V&S Absolut Spirits, SSAB, Hutmen, Holmen Paper and SCA Graphics.

About Neste Oil Corporation

Neste Oil Corporation is a refining and marketing company focusing on advanced, clean traffic fuels. Neste Oil had net sales of EUR 9,974 million for the year ended December 31, 2005. As of December 31, 2005, it had 4,486 employees. Neste Oil's shares are quoted on the Helsinki Stock Exchange.

Neste Oil has four divisions: Oil Refining, Components, Oil Retail and Shipping. Activities cover the refining and marketing of oil, Shipping and Engineering services. Main products are gasolines, diesel fuels, aviation fuels, marine fuels, heating oils, heavy fuel oils, base oils, lubricants, traffic fuel components, solvents, LPGs and bitumen.

Neste Oil's Porvoo and Naantali refineries have a combined refining capacity of about 14 million tonnes a year. In 2005, Neste Oil supplied 7.5 million tonnes of petroleum products to Finland and exported 5.6 million tonnes. Neste Oil has some 900 Neste service stations, diesel fuel outlets and other sales points in Finland, and some 220 Neste stations and outlets and diesel fuel outlets in the Baltic states, Russia and Poland. In 2005, retail sales of main oil products totaled 4,100 thousand cubic meters. Neste Oil's fleet comprises about 30 tankers plus tug boats and barges.

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